How Kenya's horticulture sector plans to bounce back from COVID-19 shock

Kenya's horticulture sector has faced significant challenges amidst the global COVID-19 pandemic, with a sharp decline in demand from key markets in Europe and Asia. Clement Tulezi, the CEO of the Kenya Flower Council, highlighted the struggles faced by the industry, stating that many freight companies had relocated due to low export volumes. However, there is now a glimmer of hope as demand is picking up, especially in traditional markets in Europe. Despite the increase in demand, the industry is facing capacity constraints with only 1,300 tons available while the demand stands at 3,500 tons. This shortage has led to a spike in prices as existing freight companies have doubled or even tripled their charges. Tulezi emphasized the need for government intervention to ease the financial burden on freighters, suggesting rebates or discounts on various charges such as landing fees and jet fuel costs. Tulezi highlighted the importance of collaboration between exporters, the government, and logistics stakeholders to find viable solutions. He stressed that maintaining the industry's position as the third-largest producer of cut flowers globally is crucial for Kenya's economy, as it significantly contributes to the national GDP and foreign exchange earnings. The horticulture sector provides over 150,000 direct jobs and supports the livelihoods of half a million people in Kenya. The pandemic forced many businesses to lay off workers and reduce operations, but the sector is now looking towards recovery. Tulezi expressed optimism about a gradual industry revival by June or July, provided the government releases financial support. He mentioned that with adequate funding, up to 75% of laid-off employees could be reinstated, although a full recovery to pre-pandemic levels may take time. In a bid to attract more freight companies to Nairobi and boost the industry, Tulezi highlighted emerging opportunities in Asian markets like Japan, China, and the United Arab Emirates. He called for concerted efforts to streamline operations and lower costs to make Nairobi a competitive hub for fresh produce exports. Tulezi's appeal for government assistance underscores the sector's urgent need for support to navigate the challenges posed by the ongoing crisis and emerge stronger in the post-pandemic landscape.